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Flashcards in PROP Deck (55)
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1

Green and Nunn own a 40-acre parcel of land as joint tenants with the right of survivorship. Nunn wishes to sell the land to Ink. If Nunn alone executes and delivers a deed to Ink, What will be the result?

Green will retain 1/2 undivided interest in the 40-acre parcel, and will be unable to set aside Nunn's conveyance to Ink. 

2

Brush is a professor of accounting at a large university. He wishes to hand out copies of a two-page article that can be found both in book in the library and through some software purchased by the university. Both are copyrighted. Which of the following is(are) correct?

I. He may distribute a copy of the article found in the book to each class member for classroom use without getting permission from the publisher.

Il. He may distribute a computer printout of the article from the software to each class member for classroom use without getting permission to use it from the holder of the software copyright. 

I and II are correct

3

On July I, A, B, C, and D purchased parcel of land as tenants in common, each owning an equal share. On July 10, A died leaving will. Subsequently, B died intestate. After A and B's death,

C and D will each own 1/4 interest in the land. 

4

A mortgagor who defaults on his mortgage payments will not be successful if he attempts to

Contest the validity of the price received at a judicial foreclosure sale by asserting that a higher price could have been received at later date. 

5

On July I, A, B, C, and D purchased a parcel of land as tenants in common each owning an equal share. On July 10, A died leaving will. Subsequently, B died intestate. If C sells her interest in the land to X,

D and X will each own a 1/4 interest in the land. 

6

Which of the following circumstances best describes landlord's constructive eviction of tenant who has written lease for the property?

a. The landlord sues the tenant because the tenant complained to government agency about the condition of the premises.

b. The landlord changes the lock and refuses to give the tenant new key.

c. The landlord refuses to provide utilities to the tenant.

d. The landlord starts a legal proceeding against the tenant for failure to pay rent.

 The landlord refuses to provide utilities to the tenant. 

7

If mortgagor defaults in the payment of purchase money mortgage, and the mortgagee forecloses, the mortgagor may do any of the following except

a. Remain in possession of the property after a foreclosure sale if the equity in the property exceeds the balance due on the mortgage.

b. Assert the equitable right of redemption by paying the mortgagee.

c. Refinance the mortgage with another lender and repay the original mortgage.

d. Obtain any excess monies resulting from a judicial sale after payment of the mortgagee. 

Remain in possession of the property after a foreclosure sale if the equity in the property exceeds the balance due on the mortgage. 

8

Delta Corp. leased 60,000 square feet in an office building from Tanner under written 25-year lease. Which of the following statements is correct?

a. In the absence of a provision in the lease to the contrary, Delta does not need Tanner's consent to assign the lease to another party.

b. In the absence of a provision in the lease to the contrary, Delta would need Tanner's consent to enter into a sublease with another party.

c. Tanner's death will terminate the lease and Delta will be able to recover any resulting damages from Tanner's estate.

d. Tanner's sale of the office building will terminate the lease unless both Delta and the buyer consented to the assumption of the lease by the buyer. 

 In the absence of a provision in the lease to the contrary, Delta does not need Tanner's consent to assign the lease to another party.

9

A purchaser of building who receives real estate title insurance will 

Not have coverage for the title exceptions listed in the policy.

10

How long is trademark of corporation valid under the law of the United States? 

 Indefinitely if not registered, until the corporation abandons it. 

11

Sussex, Inc. had given a first mortgage when it purchased its plant and warehouse. Sussex needed additional working capital.  It decided to obtain financing by giving  a second mortgage on the plant and warehouse. Which of the following statements is true with respect to the mortgages?

a. If both mortgages are foreclosed, the first mortgage must be fully paid before paying the second mortgage.

b.  Default on payment of the second mortgage will constitute default on the first mortgage.

c. The second mortgagee may not pay off the first mortgage to protect its security.

d. The second mortgage may not be prepaid without the consent of the first mortgagee.

If both mortgages are foreclosed, the first mortgage must be fully paid before paying the second mortgage.

12

Tremont Enterprises, Inc. needed some additional working capital to develop a new product line. It decided to obtain intermediate term financing by giving second mortgage on its plant and warehouse. Which of the following is true with respect to the mortgages?

a. Default on payment to the second mortgagee will constitute default on the first mortgage.

b. Tremont cannot prepay the second mortgage prior to its maturity without the consent of the first mortgagee.

c. Tremont defaults on both mortgages and a bankruptcy proceeding is initiated, the second mortgagee has the status of general creditor.

d. If the second mortgagee proceeds to foreclose on its mortgage, the first mortgagee must be satisfied completely before the second mortgagee is entitled to repayment. 

If the second mortgagee proceeds to foreclose on its mortgage, the first mortgagee must be satisfied completely before the second mortgagee is entitled to repayment. 

13

Which of the following requirements must be met, by any type of deed, in order for title to real paperty to be transferred?

a. The deed must be delivered to the purchaser of the property.

b. The deed must include a statement of the property's value.

c. The deed must include a general warranty of title.

d. The deed must be recorded by the seller of the paperty. 

 The deed must be delivered to the purchaser of the property. 

14

Bronson is residential tenant with 10-year written lease. In the absence of specific provisions in the lease to the contrary, which of the following statements is correct?

Bronson may not assign the lease.

b. The premises may not be sublet for less than the full remaining lease term.

c. The landlord's death will automatically terminate the lease.

d. Bronson's purchase of the property will terminate the lease. 

Bronson's purchase of the property will terminate the lease. 

15

Which of the following deeds will give real property purchaser the greatest protection?

a. Bargain and sale.

b. General warranty.

c. Special warranty.

d. Quitclaim

 General warranty. 

16

Which of the following warranties is(are) given by general warranty deed?

I. The grantor owns the property being conveyed.

Il. The grantee will not be disturbed in her possession of the paperty by the grantor or some third party's lawful claim of ownership.

Ill. The grantor has the right to convey the property

I, II, and III

17

Which of the following statements regarding the recording of real estate mortgage in state having notice-race statute is correct?

a. The mortgagee must file a financing statement with the appropriate state agency.

b. By recording, the mortgagee will acquire additional rights against the mortgagor.

c. The recording of the mortgage will be important in determining priority among parties who claim an interest in the real estate.

d. The recording of a mortgage is necessary to defeat the claims of a purchaser for value who had knowledge of the mortgage. 

 The recording of the mortgage will be important in determining priority among parties who claim an interest in the real estate.

18

In order for deed to be effective between the purchaser and seller of real estate, the deed must be 

 Delivered by the seller with an intent to transfer title. 

19

A mortgage on real paperty must 

 Be delivered to the mortgagee. 

20

Unless an exception to title is noted in the title insurance policy, title insurance company will be liable to land purchaser for

Recorded easements. 

21

On February 2, Mazo deeded a warehouse to Parko for $450,000. Parko did not record the deed. On February 12, Mazo deeded the same warehouse to Nexis for $430,000. Nexis was aware of the prior conveyance to Parko. Nexis recorded its deed before Parka recorded. Who would prevail under the following recording statutes?

    Notice     Race statute     Race-Notice statute

a. Nexis       Parko                Parko

b. Parko       Nexis                Parko

c. Parko       Nexis                Nexis

d. Parko       Parko                Nexis

 

 Parko       Nexis                Parko

22

Purdy purchased real property from Hart and received warranty deed with full covenants. Recordation of this deed is

Irrelevant if the subsequent party claiming superior title had actual notice of the unrecorded deed. 

23

Trees were cut down and made into lumber. The lumber was used to build house. Which of the following statements best describes the paperty aspect of these events?

a. The trees were and remained real property.

b. The trees were and remained tangible personal property.

c. The trees were real property, then became and remained personal property.

d. The trees were real property, became personal property, then reverted to being real paperty. 

 The trees were real property, became personal property, then reverted to being real paperty.

24

Sharon Rockport wate book that she just published and copyrighted. She wishes to know what are her rights and the rights of her heirs. Which of the following is correct?

a. Her heirs can have no interest in the profits on her book.

b. Her bock requires a copyright notice on it to receive protection under copyright law.

c. The copyright of the bock exists even after death.

d. She must copyright this book and register the copyright to protect the book from others' making profit without her permission.

 The copyright of the bock exists even after death.

25

Which of the following statements is correct with respect to real estate mortgage?

a. It must be signed only by the mortgagor (borrower).

b. It is effective even if not delivered to the mortgagee.

c. It must be recorded in order to be effective between the mortgagor and mortgagee.

d. It does not have to be recorded to be effective against third parties without notice if it is purchase money mortgage.

It must be signed only by the mortgagor (borrower). 

26

Under the Documents of Title Article of the UCC, which of the following correctly describes the standard of liability that must be established to hold warehouser liable for loss or damage to stored property?

a. Strict liability.

b. Deliberate destruction or theft.

c. Ordinary negligence.

d. Gross negligence 

 Ordinary negligence.

27

On June 1, Byrd Corp. purchased a high-rise building from Slade Corp. for $375,000. The building was encumbered by a mortgage and note dated May 1, executed by Slade. The mortgage had been duly recorded by the mortgagee, Fale Bank. The outstanding balance on the mortgage at the time of Byrd's purchase was $300,000. Byrd acquired the property subject to the mortgage held by Fale and, in addition, gave a mortgage on the building to Foxx Finance to secure a nonpurchase money promissory' note in the sum of $50,000. Prior to any payments being made on either loan, Byrd defaulted. As a result, the building was properly sold at a foreclosure sale for $280,000. As a result of the foreclosure sale 

Fale is entitled to receive the full $280,000 out of the proceeds. 

28

Jane and her brother each own interest in certain real paperty as tenants in common. Jane's interest

Will pass upon her death to the person Jane designates in her will.

29

In notice-type recordation jurisdiction, failure by the mortgagee to record its mortgage

Permits a subsequent mortgagee without knowledge of the prior mortgage to have a superior security interest.

30

In general, mortgage on real estate 

Encumbers the mortgagor's legal title to the real estate.